India Deepens US Oil Ties But Stresses Russian Crude Will Keep Flowing, Says Report

<p>India has sharply raised its crude oil imports from the United States since President Donald Trump began his second term, marking a notable shift in the country&rsquo;s sourcing strategy, trade data cited by ANI revealed.</p>
<p>Imports have jumped by over 50 per cent year-on-year, underscoring a deepening energy link between New Delhi and Washington.</p>
<p>Citing government officials, Moneycontrol confirmed the trend and noted, &ldquo;From January to June 25, India increased its imports of US average crude supplies by 51 per cent compared to the same period last year. (From .271 mb/d in January to June 2025 as compared to 0.18 mb/d in the same period last year).&rdquo;</p>
<h2><strong>Balancing US imports with Russian supplies</strong></h2>
<p>Despite the rising US share in India&rsquo;s oil basket, authorities have stressed that purchases from Russia will continue. This comes as President Trump asserted that New Delhi had halted Russian crude imports &mdash; a claim Indian officials have firmly denied.</p>
<p>The clarification is significant, given Washington&rsquo;s plan to roll out new sanctions next week on countries maintaining energy links with Moscow as the Ukraine conflict grinds on.</p>
<p>Notably, analysts warned India&rsquo;s annual oil import bill could swell by $9&ndash;11 billion if it is forced to cut back on discounted Russian barrels under threat of US tariffs or penalties on Indian exports. Currently, Russian oil &mdash; which made up less than 0.2 per cent of India&rsquo;s crude intake pre-war &mdash; now constitutes 35&ndash;40 per cent, saving billions in energy costs, stabilising fuel prices, and keeping inflation in check.</p>
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<h2><strong>New risks loom for Indian refiners</strong></h2>
<p>The strategy of snapping up cheap Russian oil, refining it, and exporting petroleum products &mdash; even to nations sanctioning Russian crude &mdash; has delivered record profits for Indian refiners. But this model is now at risk. Trump has announced a 25 per cent tariff on Indian goods and hinted at an unspecified penalty for Russian oil and arms purchases.</p>
<p>Coming alongside the European Union&rsquo;s January 2026 ban on refined products derived from Russian crude, the twin pressures could squeeze India&rsquo;s oil trade. Kpler analyst Sumit Ritolia described it as &ldquo;a squeeze from both ends&rdquo;, warning these moves will constrain crude sourcing flexibility, increase compliance risks, and add significant cost uncertainties.</p>
<p>India, the world&rsquo;s third-largest oil importer, spent over $137 billion on crude in the last fiscal year alone &mdash; a figure now under threat of climbing further.</p>